Kentucky Secures $110 Million Opioid Settlement from Kroger

Major Grocery Chain Agrees to Pay After Allegations of Fueling State’s Addiction Crisis

Kentucky Attorney General Russell Coleman announced a $110 million settlement with The Kroger Co. on January 9, 2025, resolving allegations that the grocery chain’s pharmacies contributed to the state’s opioid epidemic. The agreement requires Kroger to fund addiction prevention and recovery efforts across Kentucky, where nearly 2,000 residents died from drug overdoses in 2023. The settlement follows Kentucky’s decision to pursue independent litigation rather than join a broader multi-state agreement, resulting in more than double the potential recovery for the Commonwealth.

5 Key Points

• Kroger distributed 444 million doses of opioids in Kentucky between 2006 and 2019.
• Settlement funds will be split equally between state programs and local governments.
• Kentucky rejected a multi-state settlement that would have provided only $50 million.
• State overdose deaths decreased by 10% in 2023, marking the second consecutive annual decline.
• Organizations have until January 17, 2025, to apply for the next round of grant funding.

Settlement Details Reveal Extensive Opioid Distribution

Kroger pharmacies distributed approximately 444 million doses of opioids throughout Kentucky between 2006 and 2019, accounting for 11% of all opioid pills sold in the state during that period. Attorney General Russell Coleman’s office filed the lawsuit in February 2024, alleging the company lacked proper safeguards against suspicious prescriptions. “There was no internal, serious system in place at Kroger to track or report suspicious activities,” Coleman stated during the settlement announcement. “No trainings for staff. No guidelines to prevent abuse.” The company disputed these claims, stating they have “long provided associates throughout the pharmacy with robust training, as well as tools to assist pharmacists in their professional judgment.”

Kentucky’s Independent Strategy Yields Larger Settlement

Kentucky’s decision to pursue independent litigation against Kroger rather than join the 2023 multi-state settlement secured an additional $60 million for the Commonwealth. The multi-state agreement would have provided Kentucky with approximately $50 million, less than half of the $110 million achieved through independent action. Coleman emphasized the strategic importance of this decision: “If we would have joined the multi-state settlement … Kentucky would have brought home close to $50 million.” The settlement allocates 50% of funds directly to cities and counties, with the remainder distributed through a state commission to organizations combating addiction.

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Declining Overdose Deaths Show Progress Amid Ongoing Crisis

Kentucky recorded a second consecutive annual decline in drug overdose deaths, with a nearly 10% reduction in 2023. Despite this improvement, the state continues to face significant challenges, with almost 2,000 residents losing their lives to drug overdoses in 2023. State officials attribute recent progress to a comprehensive approach combining treatment, prevention, and law enforcement efforts. Last year, the state commission approved more than $12 million in funding for 51 Kentucky organizations to implement prevention, treatment, and recovery programs. “This is real money doing real good across this commonwealth,” Coleman noted.

Legal Actions Target Multiple Players in Opioid Crisis

The Kroger settlement represents the latest development in Kentucky’s ongoing legal strategy to combat the opioid epidemic. A series of state attorneys general, including current Governor Andy Beshear, have pursued legal action against companies involved in opioid manufacturing and distribution. The state has now expanded its focus to include pharmacy benefit managers, with pending lawsuits against OptumRx and Express Scripts. These companies are crucial in determining drug coverage and accessibility through health insurance plans. Meanwhile, U.S. Senator Mitch McConnell has supported state efforts by securing federal funding to address Kentucky’s addiction challenges.